Q: I’m still unclear of the resolution process. Can you help clarify reversals, disputes and transaction holds? A: Thanks for posting. First, for those out there looking for background information, we address the interaction between PayPal, eBay and chargebacks in an FAQ here:
Link 1) Reversals are a standard concept. They're on PayPal, on credit card (chargebacks), and now they're on eBay too because we've moved the resolution system over to eBay from PayPal. The opt-out on PayPal is a courtesy to sellers who would prefer to have reversals come from their payment method on file with eBay, rather than through PayPal. The advantage of not opting out from PayPal is convenience (same platform you received the funds in), better chargeback protection (because your buyer is refunded in the same way they paid you, it's harder for them to file a supplemental chargeback), and you also will get your PayPal transaction fees back as a part of the reversal/refund.
2) The eBay and PayPal systems talk to each other. Buyers won't be able to go back and file an additional dispute (INR or SNAD) on the other platform, or a chargeback for that matter. The guiding principle is one transaction, one dispute.
3) I need to defer to my PayPal risk management friends on the specifics of transaction holds, but in general they are removed as soon as we find in favor of the seller in a dispute, or the buyer closes out the claim.
4) If you as a seller charge back a reversal on your eBay credit card, you're still liable for the payment. We follow the same consequences as unpaid eBay fees--if it goes on for too long, we will restrict your account, pass the amount to a collections agency, etc.
Q: Please clarify what the opt out feature is with dispute resolution. A: With the new resolution system we've moved the process for sorting out transaction issues from PayPal (where it is currently) to eBay. As a part of this transition we made a few changes to how eBay and PayPal interact, including what you mention above.
In the new system, in the event you as a seller lose a buyer's resolution claim, we'll reverse the PayPal transaction--similar to how it happens in the current system. However, we now offer the ability to opt out of this PayPal reversal process--essentially not let eBay reverse funds from your PayPal account if required. In this case, the reversal "liability"--the amount of the refund--would not go away; you still owe the money. Instead though, we would allow you to pay it through the payment method you have on file with eBay. (We will seek your authorization before placing the charge.)
The advantage of not opting out is that the refund happens within PayPal, where you received the funds in the first place. Also, doing it through PayPal helps prevent the buyer from filing a subsequent chargeback since with the PayPal reversal we put it back onto the buyer's funding source--credit card for example. But if you choose (that is, if you opt out), we will put it on your payment method on file with eBay instead.
Also please note that the usual methods of managing buyer disputes (for example, appeal a buyer's item not received claim by providing delivery confirmation) still apply.
Q: If one does not opt out, but allows eBay permission to reverse the PayPal payment, the PayPal fee is also reversed? If you DO opt out, and make payment to eBay separately, the PayPal transaction stands (along with its fee)? A: You mention an additional benefit (such as it is) to not opting out. The PayPal system sees the reversal as a refund from the seller, so it includes the PayPal transaction fees in the refund as well. If the seller has opted out, then the PayPal fees would still apply. So your summary is correct.
Q: Will the PayPal Dispute Process still be allowed as a secondary resource for buyers who are unable to resolve disputes with sellers? A: The PayPal resolution system will continue to exist for buyers going forward, although we will encourage buyers to use the eBay one instead. Sellers will be able to see and manage disputes filed under the eBay or PayPal systems in one tool, an updated resolution center that's scheduled to go live this fall.
The guiding principle behind how these systems interact is that buyers can choose which one to use--but once they start a dispute on one, they can't switch to the other. Sellers will need to use whichever system the buyer chooses.
We also won't impose double consequences on a seller for the same transaction (or give a double refund to a buyer, for that matter). There's a bit more detail in the resolution FAQ we published as a part of today's announcements:
Link.
Cheryl
Seller Marketing and Communications
eBay
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